Accounts Payable - AP

Accounts Payable - AP

Any money that a company owes its suppliers for goods and services. Accounts payable is recorded on a company's balance sheet as a short-term (current) liability.

Notes:

Essentially, this represents debt a company must settle within one year. Examples are unpaid phone bills and other utilities.

See also: Accounts Receivable, Balance Sheet, Current Liabilities, Other Current Liabilities, Receivable Turnover Ratio